“Creative Technology Ltd. Wednesday reported net income of US$92.2 million for the second quarter of its fiscal year, largely due to a one-time licensing payment by Apple Computer Inc,” Sumner Lemon reports for IDG News Service.
“Creative, which makes MP3 players and PC audio components, said net income was sharply higher over the same period one year ago, when it reported net income of US$8.2 million,” Lemon reports.
Lemon reports, “The big jump in net income during the second quarter came largely from a US$100 million licensing payment received from Apple. That payment contributed $82 million in net income, Creative said. Excluding the Apple payment and investment gains, Creative’s net income for the second quarter was $9.9 million.”
Full article here.
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Creative does Apple’s dirty work by immediately attacking Microsoft’s Zune – September 17, 2006
Creative Tech: we will pursue all MP3 player- and cellphone-makers that infringe on ‘Zen patent’ – August 30, 2006
Apple investors cheer as Jobs wins again by getting Creative – August 24, 2006
Apple and Creative settle – the bigger picture – August 24, 2006
Analyst: Apple’s relatively small settlement with Creative removes threat hanging over iPod – August 23, 2006
Apple & Creative settle: Apple pays $100M for ‘Zen’ patent, Creative plans iPod accessories – August 23, 2006
Their investments don’t seem to have performed too well, maybe they should have bought some AAPL
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Too bad for Creative though that they won’t be getting any more big checks from Apple. So look for next quarter’s numbers to totally suck.
Apple must be going to use the new iPhone interface on all future iPods, so they knew that this was a one time deal…as long as no one sues for the new interface, that is.
This gives creative some cash to battle MS somwehat for the left overs of Apple
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And yet, Creative’s stock is still falling. If they have any brains at all they will start making iTunes compatible devices as Apple is seriously considering (or already has?) opening its DRM to 3rd parties.
If it wasnt for the MS and Apple $$$ creative would be done for.
I would call that Creative accounting.
After getting the $150 Million from Apple, Creative went nuts.
Someone recently told me (please don’t quote me) that during the last dinner & dance hosted by creative, every single guest who atteneded got a door gift of about $500 in cold hard cash.
I’m guessing that Creative was freaking happy their accounts are now in the black for once ever since the introduction of Apple’s iPod that they had to splurge to show it.